5/05/2008 @ 5:15PM

In Pictures: Reasons Not To Become A Doctor

Costs Of Practice Rise, Reimbursements Drop

Over the next nine years, Medicare (which provides health coverage to one-third of Americans) plans to cut payments to physicians about 40%, while practice costs will increase 20%, according to the American Medical Association. The first changes take effect as soon as July, when the government program reduces its reimbursement rate to doctors by 10.6%. The next cut will come in January, when rates will be sliced by another 5%. These changes aren’t occurring in a vacuum–other insurers tend to follow Medicare’s lead.